Samsung has pulled its new Galaxy Note 7 smartphone from the market and initiated a global product recall following reports that the handset’s battery has a spontaneous overheating problem that results in fires and explosions. The fallout from the Note 7 fault has wiped $7 billion off Samsung’s market value.
“In response to recently reported cases of the new Galaxy Note7, we conducted a thorough investigation and found a battery cell issue,” an official statement from Samsung reads. “To date (as of September 1) there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market. However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7.”
“For customers who already have Galaxy Note7 devices, we will voluntarily replace their current device with a new one over the coming weeks,” the statement continues. “We acknowledge the inconvenience this may cause in the market but this is to ensure that Samsung continues to deliver the highest quality products to our customers. We are working closely with our partners to ensure the replacement experience is as convenient and efficient as possible.”
“There was a tiny problem in the manufacturing process, so it was very difficult to figure out,” Koh Dong-jin, president of Samsung’s phone division told reporters (via BBC). “It will cost us so much it makes my heart ache. Nevertheless, the reason we made this decision is because what is most important is customer safety.”
“It has been confirmed that it was a battery cell problem,” he added (via The Wall Street Journal).
Since its launch on 19th August, Samsung has shipped 2.5 million Note 7 handsets to US and Australasian markets, but all sales have now been halted in existing markets. The phone was set to be released in Europe this week – it should have been released today (2nd September) in the UK – but the battery fault has resulted in an indefinite delay. Anyone who owns an imported Note 7 is still eligible for a replacement.
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